tv Power Lunch CNBC September 14, 2012 1:00pm-2:00pm EDT
at grasso, steve, final trade? lng? >> steve weiss? >> lly, lilly. >> and the doctor. >> iag. >> have a great weekend. watch "power lunch" now. >> halftime is over. "power lunch" and the second half of the trading day starts now. ima gold, ima be, black eyed peas is the reference. where is your money best put to work right now? we're going to go sector by sector throughout this hour. now, a big move at the dow in and out. out comes kraft. in goes united health group. does anybody else see an irony there? the united health group goes in for the maker of velveeta and other delicious foods like that. first change in many, many years.
and then there's this. wait until you hear. look what's going on there. the story behind this break-in at a california apple store. they're going to be talking about it for years. the guy drives right in. it's a drive-in apple store. look at that. sue's at the nyse. >> wait until you see him try to get out of the apple store. that's the best part of the whole story. thanks, ty. the markets down here still continuing to march slightly higher. i just want to focus on the s&p for just a few minutes here. we're nearing a five-year high. we're above -- we were just above the 1468 mark just moments ago. we made some calls to several of the big names on wall street to see if they're changing their rather bearish s&p forecast. so far they're not. adam parker at morgan stanley is sticking at 1167 by year end. at goldman sachs, david costen says we will fall to 1250 before the end. year.
david bianco still at 1475. and at rbc, miles auerbach says we are underweight equities. and her year end forecast target is still at 1450. she's first to put out a note for 2013, and the target there is 1600 on the s&p. so far they're sticking pat, but we'll wait and see what happens before the end of the year. >> let's wait and see what happens now. we're going to bring in katie nixon, wealth manager. you hear about forecasters staying where they are. are you going to change your forecast? >> we've increased our forecast for the s&p looking at 1510, looking at multiple expansion in this environment for low for even longer. >> we're at 14 what on the s&p right now? >> 1485. so it's about a 2.5% increase from here. not without risk, but we still
see upside. >> between now and the epd of the year? >> sure. >> we'll be back with you later. let's move on. want to check out -- whoa, there you are. two other sectors. courtney reagan has been making calls on how the retail sectors are going to fare. seema mody is here. i'm supposed to stand between you. hard to stand between you two ladies. she's talking about the pharma sector here. >> could help with mid-term demand according to jefferies. if treasury yields are going to stay low with the recent bond buying program, the dividend yield on the health care names will continue to be effective. that's one of the reasons the money managers are allocating capital into pharma. bristol yielding 4%. merck yielding 3.8. regardless of the broader
economy, j&j is at an inflection point in terms of earnings growth. they expect j&j to transfer 2% to 3% revenue growth to 4% to 5%. so j&j is one stock to watch. >> let's turn to courtney and a sector i like to spend time with, retail. >> it's going to be an important season coming up. may not seem there's an obvious correlation between foreign policy and retail. after speaking to some analysts, a number believe it's the higher end retailers that will likely feel the positive impacts from further quantitative easing while the middle retailers could be further squeezed. morning star's paul swinton said it pushed the money into commodities, which actually end up hurting department stores on the cost side. notice it didn't do kohl's any favors. but global luxury companies seem to benefit when the go-go entrepreneurs of emerging markets are suddenly flush with cash. they want to do luxury goods shopping.
jp morgan's big boss thinks saks could benefit. they don't have the high value shares, and saks shares are historically 80% correlated to the broader market. to the extent of that, boss expects saks to follow suit. >> next time i'm going to wear my heels so i can stand up with you. >> you should do that. >> i'm sure the wardrobe room has city let tostilettos for yo. it was like a pap ratpaparazzi my kids' school today, asking me questions about the fed. diana should have some answers. is this lower fed rate going to help me sell my house? >> the fed is making big decisions regarding mortgages. you want to know how that's going to help you and your house. it's all about keeping mortgage
rates low. lower mortgage rates offer more purchasing power. according to dan green, a 0.125% drop in rates, which is what we saw today, adds 1.5% to your maximum purchase price. assuming a mortgage payment of $1,500, that's the difference between buying a $404,800 home and a $411,000 home. if more buyers can spend more on a home, that boosts overall home prices. to the question of your personal pocket, refinancing. let's say rates drop down to 3.5% or even a bit lower, can you significantly reduce your monthly mortgage payment and get a little more spending money? it depends. millions of borrowers have already refied at record low rates where they are now. remember rates went up over the summer after they hit the record low, and now they're coming back to where they were. they could go lower, but they didn't today. we got this great consumer sentiment number, and that
counteracted what the fed did. then there's the 11 million underwater borrowers. you're not going to get a refi unless you can get in on the government program called harp, but only if your loan is fannie or freddie. tyler? let's talk about low interest rates. t.j. is a cnbc contributor. one of the theoe theories here quantitative easing will force interest rates down, it's the idea it will force savers out on the risk spectrum. >> it's against their will. savers want to make money in the safest yields possible, but they're making it very uncomfortable. >> does this point you to any hunches of where you might have an opportunity? >> no doubt about it. we were talking about utilities up until a couple of months ago, then they fell out of favor. i think they're coming back into favor. when you push unwilling movie back into the system, you've got to take risk or you're not going
to be able to pay for the same amount of gas or same amount of food. they're going into things like so, pays a 4% dividend, xlu. there's going to be high beta names that do fine too. >> utilities as a yield play as an income. >> that's what i think? >> jim, we'll see you later when we analyze this. sue? >> ty, thank you very much. one thing people are talking about is the fine levied by the security and exchange commission against the new york stock exchange. they were funneling money to customers before sending the same data out to the public. they agreed to pay a $5 million fine and says it was the result of a technology error and that error has been fixed. bob pisani is here. you covered high frequency trading, flash trading, dark pools for some time now, bob. it's a $5 million fine. that's not a large fine for an institution like this by any means, but the headline on main street may be one more reason for people to think it's not a level playing field.
>> it's not the fine, it's the fact that it happened and the fact there's an agreement on it. the money is not that important. it's not rigged. it's not intentional. you don't want anybody to be given any kind of special advantages. the funny thing is there were rules created several years ago that specifically said everyone has equal access to the price and the time of stocks at the same time as well as data feeds, and that's what we're talking here right now. the s.e.c. and the nyse agreed the proprietary feed gave customers certain improper head starts. maybe just a millisecond before, but that's enough to give people an advantage. so there's very clear rules from the s.e.c. prohibiting any exchange from giving these proprietary feeds to customers that work ahead of the consolidated tape. two things about this. number one, good move. i applaud the s.e.c. excellent call from them. about time people looked at this. number two, all exchanges offer proprietary feeds.
nasdaq does. i'd like to see everybody looked at equally here. and finally, we'd like to see more on this kind of information. >> indeed. bob, i'll see you a little later. now to brian shactman. he's got a market flash. >> trasm, total revenue per available seat mile. it's an airline term, jargon actually. spirit airlines says it is going down. year over year, a huge dropoff in the stock seeing a big dropoff today, 14.33%. raymond james downgraded the stock. and they released the price target based on this news. very competitive space. hurricane isaac, tyler, very big problem. back to you. >> now to your money, your vote. and the race to raise money on the campaign trail. republican presidential candidate mitt romney arriving in midtown manhattan this morning. 8:00 a.m. breakfast, fund-raiser, some of wall street's heaviest hitters there. >> it was a very enthusiastic crowd. it was a big crowd. we had north of 900 people there.
raised over $4 million. >> we need executive leadership. i think it's been lacking the last four years. >> he's smart. he's accomplished. and i backed obama the last election, but i want to back mr. romney this election. it's all about the economy. >> in particular, the small business section, i thought, was quite good. that hit on the key issues we've been writing and talking about a lot. >> we're trying to save the soul of america. >> why is it that the president doesn't speak to the most important issue? that is, getting people back to work. >> that last person, a former new york senator alfon stamato. president obama has certainly raised funs in the new york area as well, but has he lost wall street? has he lost it forever? chief washington correspondent john harwood with thoughts live in d.c. hi, john. >> hey, tyler. he certainly lost it for now. if you look atted fund-raising
numbers, mitt romney has raised more than $11 million for wall street. barack obama, almost one-third of that or a little over one-third, $4 million four years ago. he outraised john mccain substantially. that simply reflects many of the issues that motivated people on wall street four years ago in the wake of the george bush presidency, the unpopular iraq war, the standing of the republican party on social issues and things like that, those have been shoved aside, and now this is an election purely on the economy. you've got a president who's proposing to raise taxes on people at the top. he's pushed through the dodd-frank regulation. that's something that wall street doesn't like. you can see it in "the new york times." voters over $100,000 in income, obama broke even with them four years ago over john mccain. by 16 percentage points, they're favoring mitt romney. >> ty, there's been an unusual break-in at an apple store. we have the video that's really going to leave you asking
questions about the state of american youth. wait until you see more of this video coming up next. also ahead, kayla and a flood of ipos. >> ipo drought comes to an end, and it's a halting end. i'll show you what's on the docket and which ones you really need to watch for. ♪ ♪ [ male announcer ] introducing a reason...to look twice. introducing a stunning work of technology -- the entirely new lexus es. and the first-ever es hybrid. this is the pursuit of perfection.
this report just into our news room. reports say a large cloud of black smoke is rising over the building after police try to keep rioters back, but they could not. it's not clear how many americans are inside. neither is the status, of course, of their safety. a special team of 50 u.s. marines right now is on the way to yemen to provide more security for the besieged americans inside the embassy there. protests also ongoing in cairo. egyptian riot police have been fighting with rock throwing rioters all day long after friday prayers. in lebanon, a kfc restaurant has been attacked. angry mobs also protesting against the united states in that country. things are especially tense in lebanon today, and that is because the pope has arrived for a regularly scheduled visit. in about an hour as well, president obama will receive the caskets carrying the four americans who were killed in libya earlier this week. he will be at andrews air force base, and we will carry that live for u as is always the
case, when there is serious violence in the irish world, we have to look at oil. right now west texas intermediate is up .5% at 98.71, and brent crude is up about one-third of a percent at $116.32. >> after quite a busy start to the year, there hasn't been an initial public offering in the united states since august 16th. that was 29 days ago. that is about to change big time. kayla is looking ahead to a deluge of deals next week. >> there certainly is a busy backlog coming to the fore of the ipo market next week. seven companies are set to hit the market, and it's long overdue activity for sure. it is a cross-section of industries, which is a good thing, two banks, an oil company, a biotech company, a real estate website, and an electric vehicle company to boot. investors say not so fast. it will release $2 billion. that's only roughly 31% of the proceeds so far. excludeing facebook, those
proceeds are the lowest level in nine years versus last year. dollar proceeds are down 41%. the back drop overall for these deals, not as friendly as investors had hoped. this year's newly minted stocks are up 15% according to renaissance capital, but still underperforming the s&p 500, as you can see. one sector doing the best is consumer, responsible for the most ipos of any sector out the gate. further evidence of a slowdown, the pipeline ahead is sluggish, and the big kahunas like k cosmetics company coty and pfizer animal health. >> take a look at nike. nke not participating in the rally. i'm not trying to be a debbie downer with some of these stock
calls down 2.5%. a couple of notes here. yesterday it downgraded from neutral to buy. we also have canaccord coming out today and saying after the summer olympics in order volume moving forward. especially when you look at comps. concerns over the stock down 2.5% on heavy volume. ty, back to you. >> thank you, brian. this video making the rounds from the apple store in temecula, california, not far from long beach. shows a bmw many ramming throug glass doors of the house. it happened last week. the video has just been released. look at this. this guy, my goodness gracious, think of the damage he's doing to his car, let alone the store. he gets out of the car, starts scooping up apple's famous mobile devices, leaving most of the mac books alone, apart from the ones that are on those tables. more proof that today's youth likes mobile maybe better than the laptops. it's a beemer. so the damage to the car, as we
mentioned, maybe more than the stolen merchandise was worth. the damage to the car won't be the crook's biggest problem. the driver lost his license plate in the crash and flattened two tires, making it pretty easy for the police to track him down and arrest him. his accomplices, however, are still on the run. no word on how many i phones were taken. sue? >> let's get this straight. they basically left their license plate? >> they left their license plate there. >> not only are they breaking the law but they're stupid. thanks, ty. investors like the fed's move so far, but some investors could reap the benefits perhaps more than others. we have one key list a lot of people are paying attention to coming up on power lunch. and we're waiting for possible cuts from the white house if the budget impasse isn't solved. with the dow jones industrial average up 35 points. we're back in two. [ male announcer ] let's say you need to take care of legal matters.
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let's analyze this. jim iurio is here. let's start with downgrading at&t and verizon. the analysts say, while we continue to believe that both verizon and at&t will dominate the u.s. telecom sector, the two mega caps could be used as a near term source for investors. that's a mouthful. at&t up 32% over the past year, and the u.s. also lowered estimates because, quote, we believe potential down side for earnings exist.
do you agree or not? >> you're kind of saying the same thing i was going to say. i read the note a couple of times and thought it sounded reasonable. they're talking about margin compressions, can booing profits in certain quarters. at the end of the day, i realized that this doesn't matter. both these two names are going to march to the macro drummer. one is a tail wind in any association with apple. two, we're talking about the fed yesterday injecting money into the system. both those names play a 4.5% dividend. i think they're concentrating on the minutia. >> so you don't go with this downgrade. >> no, i like both those names. >> verizon is up 24%, 25% over the past year. jp morgan chase downgrading the cme group. this one cuts close to home, mr. iurio. morgan sees a disconnect between the fundamentals in cme's core business and the price appreciation and valuation of the stock. shares of the group up 23% year to date. a sensitive topic. guide us through it. >> one i will not count on the
stock price. 20-plus year member of the cme. won't comment on the stock price. i will say the historical trends, periods of very, very low volatility are followed by periods of very, very high volatility, and they're usually in equal proportion. my thinking is, not just in cme, but anywhere where things are traded, volatility happens. when it snaps back, it's probably going to snap back in a vicious way. i neither agree or disagree, but volatility will come back in the trading world at this time. >> very carefully stated. zinedine ynga, very big and controversial move. it's a big gamble on the future of the company. what will it mean for the stock? that is next. plus warhol on the loose. we'll explain coming up. [ male announcer ] for the dreamers...
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yesterday fortune.com reported private equity interest in staples. that stock sky rocketed on huge volume. today it's a follow through, and the other two companies in this space also getting heavy volume and sharp moves to the upside. investors, sue, chasing the premium potentially. no deal yet and maybe not till the end of the year. >> brian, thank you very much. we'll be watching that one certainly. the medals markets are closing. sharon is tracking the action at the nymex. it is on fire. last time i checked, it was up $35. >> the platinum market is on fire. a lot has to do with not only the risk on trading qe but also what we've seen in south africa. what we're looking at in terms of the gold market, it looks from the flat price that gold is flat on the session. you have to keep in mind where gold was before the fed's announcement of more quantitative easing yesterday to where it is now. it's about a $60 range in the gold price here. so we are looking at a significant increase in gold and
a greater allocation from many funds into gold according to rbc's george jiro. keep in mind as well, even though ben bernanke played down the inflation concerns, when he was talking to steve liesman yesterday, that is a big concern, a big reason why folks want to get into gold. we're also looking at what's happening to copper because copper has rallied significantly in this session. barclay says that, even though in the short term we're likely to see the base metals benefit from qe3, it's not likely to last. precious metals is where you want to be and where you'll see the biggest gains. that's what they say. back to you. >> down here on the floor of the nyse, bob pisani and i were just talking, and he said heavy volume to the upside. second day in a row. >> we haven't seen two days of the heavy volume in a row. north of 1 billion shares on the tape here at the nyse. three to one advancing to declining stocks. the dow up 100 points early in the day. risk on, financials, all in the lead. watch the volume on the ets.
that's where we're going to see enthusiasm. watch price action. here's the heavy volume etfs. financial etf. xlr heavy all week. that's an emerging market. they're going after stocks today. see japan. last time i saw japan on a big active heavy volume etf list, you haven't. that's enthusiasm for stocks. that's the gold miners. sharon was talking about the metals complex. >> up 2%. >> fairly rare to see active heavy volume. that's a small etf. it's fairly rare to see that. they're going after the risk assets. bernanke has made it very clear. commodities in stocks and materials in particular, weak dollar. they're doing exactly what he wants essentially. >> so far anyway, right? thanks, bob, have a great weekend. have a good vacation. >> i'll be in spain for a few days. looking forward to being back in barcelona. >> jealous. let's go to the nasdaq. jackie deangelis is following the big movers over there.
hi, jackie. >> good afternoon, sue. paring our gains at the nasdaq. up about .9%. no doubt some of that is due to apple continuing to break through all the time. we're continuing to see the stock up 2%, 694.37. also keep your eyes on google. continuing that stealth rally. google up .5%. the semi is seeing a lot of green today. we're watching big movers like maxim, texas instruments, also alterra. as a group, higher nonetheless. also, facebook, up about 9%. a good week and a good day for the stocks. and we're also watching splunk, up 3.3%. splunk, in fact, its market cap bigger than groupon, bigger than s zynga, and bigger than amd. >> now to the bond market. rick santelli can traing action at the cme. what a week. i'm glad it's friday. i'm sure you are. how ps athe bond market behaving? >> i'm not glad it's friday.
let's play two. i'll come back again tomorrow. when i look at the market and listen to all the great people we've had on tv today, i keep hearing the same thing. don't fight the fed. they're going to keep rates down. i'm sorry, gang. rates aren't down. and any gains on the mortgage side are being zapped up by non-gains, higher trades on the treasury side. we were a whisk away from 190. fimly comped over that august little bump. we're comping back like everything else in may. look at the 30-year bond, traded 310, comping back to may. dollar nx is down on the year. boy, that chart doesn't look like you want to be picking animent bots there. and the last chart, bob talks about it, in a world where credit is controlled, the junk is looking better because people are looking for yield. this particular etf, hyg, it's off to the races as well. tyler, back to you. >> mr. santelli, thank you very much. the impact of the fed's move being felt in washington. the chairman flat out saying the fed does not have a bullet to fire if the government goes over
the fiscal cliff. today the white house is expected to lay out what could be some of the most drastic budget cuts ever. >> we're just learning within the past couple of minutes those details will come out at 2:30 this afternoon from the white house, releasing details of the so-called sequestration plan. that's their plan for what to do if we go over this fiscal cliff. remember this is a plan the white house hopes it won't have to implement nonetheless. here's what we know so far. the white house spokesman jay carney earlier today said that sequestration is designed to be bad policy. it's designed to be onerous. this was the poison pill in negotiations. it's going to be a very tough plan they release today. the specific proposals are coming out later in the afternoon, as i just said. it's not clear particularly where the defense cuts are coming. that's where we could see the earliest job losses among defense contractors and, in particular, corporate impact of the sequestration. that's something a lot of
observers will be looking for. tyler, to reemphasize, this plan that we see at 2:30 is a plan that the white house hopes they never have to use. they hope that negotiations on the fiscal cliff will make all of this sort of a moot point, and the nation will be able to move on without having to do the tough stuff they're going to lay out this afternoon. >> eamon javers, thank you very much. let's start. the fact that qe is now here takes one of the uncertainties of the investing year off the table. was there going to be qe or not? the other uncertainty is the fiscal cliff that eamon was just talking about. how do you handicap it? how do you prepare for it? what do you do in light of that looming fiscal cliff? >> tyler, that is certainly our biggest near term risk. most of the other big macro risks have been taken off the table. there's no way to handicap it other than to say the base case
is kick the can to 2013 and probably resolve this under a new administration for the existing administration, but the next president is going to have to deal with it. >> certainly will be a different administration or a different congress. who knows which way that may tilt? you see it as the biggest risk out there, biggest uncertainty out there. let's talk about qe3. did it surprise you in any dimension? >> i think it's very surprising. this is a historic moment for bernanke, who's making an open-ended and unlimited promise of monetary stimulus. so i do think, in terms of the optionality that's embedded in the statement and the policy, i think it is very, very unique, and it was kind of surprising. >> you think back 15 years ago, 20 years ago when the fed rarely spoke at all, and they certainly didn't telegraph their moves very much. here is the fed chairman saying we're going to keep rates down until 2015, and i am going to keep pumping $40 billion a month
in as long as it takes to keep the job market going. >> and even longer. i think he said yesterday, it's one of these i'll know it when i see it kind of things. there's a equaltative aspect to his statement enough is enough. so i think he would stay even longer with this policy. >> what should i do with my portfolio? what should i overweight in light of this? what should i underweight in light of this? >> clearly, this is very good for risk assets. from a big asset allocation perspective, we see a couple of themes emerging. we're in a low rate environment for the foreseeable future. this global search for yield is going to continue. >> where does that lead you? >> it leads us to making relative bets within the portfolio. for instance, we still favor high yield bonds. very good relative yield, especially in this environment that we see going on for at least into 2015. you've been talking a lot about dividend paying stocks. that's one of our themes. it's one we're looking at very
carefully given the valuations. the last thing i'll say on it that is clients that have cash in their portfolios, that's a pain trade right now. we're talking to clients about rethinking their cash and potentially moving a little bit out in either the credit or duration or both areas. >> do you overweight gold? of course, gold was moving up yesterday in this scenario. >> as we've talked about before, tyler, northern trust has been overweighted at gold for quite a while here. it was called into question several times this year as gold had a few hiccups. we remained very steadfast in our double weight in gold. clearly, with the ecb decision last week and the gold decision. it will continue to do well. >> so dividend stocks, high yield, and overweight gold. have a great weekend, katie. sue, back to you. >> thank you very much. we're going to talk about alternative assets. warhol, warhol, everywhere.
the alternative business of the pop art icon is about to grow like never before. we'll tell you why coming up. plus shares of zynga down sharply from their ipo, but today they're up better than 6%. >> sue, zynga's most popular destination for free online poker. will people pay to play? at usaa, we believe honor is not
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nothing complicated about a pair of 10 inch hose clamp pliers. you know what's complicated? shipping. shipping's complicated. not really. with priority mail flat rate boxes from the postal service shipping's easy. if it fits, it ships anywhere in the country for a low flat rate. that's not complicated. no. come on. how about... a handshake. alright. priority mail flat rate boxes. starting at just $5.15. only from the postal service. brian shactman at the markets. looking at oshkosh. over the years it expects to double its earnings. people are buying into that. it's a new high at $29.12.
>> up almost 6% on the day. thanks, brian. let's see what's coming up at 2:00 p.m. on "street signs." >> big ben and the iphone 5 to the rescue. which one has more juice when it comes to the economy and your money. also, stocks hitting all kinds of multi-year highs at the moment. we've got the $100 billion man, a top money manager is names you can buy today. and is your retirement nest egg enough? vote in our street poll at streetsigns.cnbc.com. we've also got fidelity with us to round down their new, and frankly, quite surprising age-based saving guidelines. all those things coming up at the top of the hour. back to you guys on power lunch. >> sue, thank you. let's take a look at shares of online company zynga, which are now up 7.5%, but its stock falling 69% overall since its ipo in december. popping today after a wave of high profile departures, a new hire, and a new question. can online gambling save that
company? julia boorsten is live in los angeles with answers to that. hi, julia. >> hi, sue. online gambling is still illegal here in the u.s., but if zynga can convert even a small percentage of its international players to paying gamblers, that would mean a big boost to its bottom line. shares spiking sharply after the company hired online gambling exec to be chief operating officer of a division for new markets, saying she is a strong advocate of integrating social features into real money offerings. in july, ceo mark pingas says the company plans to launch into the gaming markets in the first half of 2013 subject to licensing approvals. zynga has the biggest free online poker game in the world. 35 million play zynga poker every month according to app data. it recently added bingo and soon will launch slots. the challenges here are we have
to remember many. fragments regulation across europe plus a number of established rivals. the real opportunity may lie here in the u.s. where online gambling is still illegal, but zynga and some others are lobbying for regulatory change. tyler, if zynga did have the opportunity to launch in the u.s., they might partner with a big casino. this is certainly an area to watch. over to you. >> all right, julia. thank you very much. 25 years after andy warhol's death, the artist continues to resonate among collectors who need to pay top dollar. sometimes tens of millions to get their hands on some of his work. no surprise perhaps that the foundation that bears warhol's name is going to soon flood the market is hundreds of warhols, in a move that has some collectors up in arms. the foundation obviously wants to raise some capital. more now from milton, the publisher of art news, the most widely read art magazine in the world, and cnbc.com's robert
frank. mr. essero, let me begin with you. why is the foundation doing it this, and what effect is this likely to have on the price of warhols around the world? >> most of the material that is coming up for sale, most of the good material the foundation has had has already been sold. what's left, frankly, is material that it's not going to go for $80 million, which is a record warhol many years ago. it's mainly ephemera, and also there are rumors, the foundation is not confirming this, but they're shopping around, and dealers had been looking at this as well. it's finally wound up at christie's. andy would love what's going on because he advised people not to worry about what other people
are writing or talking about them. and just to measure it all in inches. "publicity is like eating peanuts," he once said. he said, once you start, you can't stop. >> i like peanuts, i'll tell you that. who's out buying art today? tell me about the warhols, expressly, if you're familiar with who's buying them. >> just going back to what milton said for a minute. my dealer folks tell me there were a couple of people shopping around. they pick through a lot of this material years ago. peter grant and the mugrabi family, boellingt of whom have a lot of warhols. they wanted it, but they weren't able to buy it. it's polaroids of warhol's cool friends downtown in the 1970s, some doodles that he did. there's one called targets that may sell for a million or more. this is like the warhol garage sale, jurng that was still lying around. it's not going to affect the big
prices, $80 million, $100 million prices that he got for his top work. what's interesting, what i think warhol would love, is you can now get a warhol at any price point. a $50 warhol, maybe just a polaro polaroid, or a $50 million war l ho. it's like a vw strategy, where they'll sell a $16 million bull gaty. >> and you characterized what's coming on the market as warhol ephemera, sort of second tier works and maybe below that. does it affect the price, the value, i should say, of those bigger works? >> no, it will not in any shape or form. what's happening is at the highest level the market is stronger than it ever has been. what's p haing is with the emergence of billionairs coming out of the wood work almost
every week and they want to get into it because they have enough yachts and race horses or girlfriends, so they decide to get into art. they don't know anything about it, but they know the brand names. who are the brand names? it's picasso and warhol. that's where they head. meantime, the foundation is making quite a lot of money. in addition to this auction taking place, they license. this may not be as well-known. i did some research. they're licensing everything from candies and clothing and perfumes and much was and rugs. even in japan, they have sold condoms featuring warhol's distinctive camouflage print, carrying the message, they'll never see you coming. >> on that note of warhol inscribed condoms, we're going to leave it there. thank you very much. robert frank, thank you. all right.
now a new day, a long initiative here on cnbc. a look at some of the bold faced names that have been in the news this week and the impact they have had. we're calling it the ego trip, and we want you to tell us which news maker this week had the biggest headline, good or bad. this week's nominees, mark zuckerberg, ben bernanke, tim cook of apple. log on to facebook.com/cnbc, and don't forget to tune in to street signs to see who you chose. sue? >> all right, ty. coming up, a new poll shows president obama holds the lead over mitt romney in three key states. but mr. obama continues to the ba well wall street. is the street funneling more money to his rival mitt romney? we'll talk about that when power lunch comes back. [ male announcer ] how do you trade?
it is power rundown time. bob pisani and john carney are with me today. good to see you, gentlemen. we told you a bit earlier we made some calls to a few of the big banks telling me they're changing their rather bearish s&p forecasts. turns out most of them are not. what do you think, bob? you did point out the fact that the volume is heavy to the
upside today, but they're sticking with their, in some cases, rather bearish forecast. >> only a couple. todd lee who's a portfolio strategist, he did raise until 1495 but only up until the election. i think a lot of people are still -- look, if you're bearish because you think things are going to deer titeriorate, thero reason to change it. i think the fact that we're up here high, i'm surprised more people didn't raise it. >> although katie nixon told ty she did raise her forecast. >> i think these people are out of their minds. it's the most hated rally. as you said, of all time possibly. with the fed coming in with this qe2 infiniti, things are going to go up. not changing your forecast is almost lunatic. >> there are those who think the reason the fed had to do an open-ended accommodation is because the economy is not going to improve for a long, long
time. >> i don't buy that. i think the fed was changing it without a bearish forecast. things were going pretty well, but they want them to go even better. >> next up, mitt romney in new york for a fund-raiser. president obama had been doing well with the manhattan fat cats. after his open hostility towards wall street, at least that's their perception, where do things happen? what do you think, john? i would argue he lost wall street's support some time ago. >> obama lost it as soon as he started using the word fat cats. turned off a lot of people. interestingly, though, wall street tends to want to go with the winner. but romney's behind in all the polls. so it's very possible that we're going to see some money flowing towards obama. >> my experience, being on the floor 15 years, 75% of the people down on wall street are republicans. yet i'll bet you 75% of the money is not going to mitt romney. i bet you that is not happening. isn't jay-z and beyonce doing a
big thing? $40,000 for the president? >> i believe it's this weekend. >> i do think that bob's right. it's all relative which way wall street is giving. they're not giving as much to romney as they actually are republicans. there's more money going to obama than you would expect given the party makeup. >> all right. the wall street -- we were just talking about this one, bob. "the wall street journal" finds goldman sachs has scaled back its junior analysts program, including axing their bonuses as well. these are kids that come out of college and get their first job. they used to get a contract, and they used to get a bonus. >> let me get this straight. goldman thinks someone is taking advantage of them? >> it sounds like it. >> you pronly know this story too. i know many kids out of college who worked at the wall street firms, not just goldman sachs. it's indentured servitude for two years. you work all through the weekends. you are abused. it's like a hazing ritual, and they're used by these firms. they're not taking advantage of them.
for them to sit around and see, well, maybe i'll leave after two years and they're mad about it, why can't goldman keep them? >> here's what goldman says. the insiders said, look, it's been a change in market structure. you used to be able to go to business school after two years of working on wall street. now business school wants to you do five years in the real world before they take you in. so they're saying the old two year and out structure doesn't work, and they're going to maybe have some kids stick around after two years. >> $70,000 and no bonus. >> in new york city. >> i don't think that's going to hold up. i think that eventually they'll have to pay a market bonus. >> gentlemen, we've got to go. thank you very much. ty, back to you. >> we're going to cut their bonuses, sue. >> indeed we are. >> the iphone pre-order craze and a comparison to the carriers. can you keep grandfathered unlimited data? can you re-up your two-year contract early? plus how to get money for your old phone. that's coming up on cnbc after the top of the hour. what if yol night-vision goggles, like in a special ops mission?
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and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. you're looking at housing stocks. >> i am. i think after the fed's move yesterday that housing is going to move into a safe haven play. i know it sounds crazy. we'll see if it sounds crazy in a couple